Bond Traders Face 2025 Amid Most Agonizing Easing in Decades
- Yields increase more than any other rate-cut cycle since 1989
- Curve steepens as traders again recalibrate Fed expectations
Last week, policymakers led by Chair Jerome Powell signaled that they are prepared to slow the pace of monetary easing considerably next year.
Photographer: Ting Shen/BloombergThis article is for subscribers only.
Bond traders have rarely suffered so much from a Federal Reserve easing cycle. Now they fear 2025 threatens more of the same.
US 10-year yields have climbed more than three-quarters of a percentage point since central bankers started slashing benchmark interest rates in September. It’s a counterintuitive, loss-inducing response, marking the biggest jump in the first three months of a rate-cutting cycle since 1989. Yields were higher on Monday, with the benchmark 10-year rate up about two basis points to 4.54%.